How would you gauge the size of the one-year U. S. masticating gum market? Check your reply for rationality.

A typical attack:
Estimate the figure of people who chew gum: of the 300 million population. 15 % are between the ages of 10 and 20. the heaviest users. for a sum of 45 million. Estimate that these people chew two battalions per hebdomad. for one-year gross revenues of 4. 500 million battalions. For the other users over age 20. ( 70 % of the 300 million population. or 210 million ) estimation a usage rate of one half battalion per hebdomad. for a sum of 5. 250 battalions per twelvemonth. Entire battalions per twelvemonth is 9. 750.

To look into for rationality. figure the dollar gross revenues that these battalions represent: at 25 cents per battalion. one-year gross revenues would be $ 2. 4 billion. a sensible figure.

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Pizza Hut has late entered the place pizza bringing concern in Paris. The market for place bringing is presently dominated by Spizza Pizza. Pizza Hut has asked your confer withing house to assist it analyse issues that will find its likeliness of success in the Parisian Pizza market. First. what information would you necessitate and back. how would you analyse the pizza bringing market?

Possible Information Needs:

An estimation of the size of the Parisian place pizza bringing market. This could be obtained by cognizing the population of Paris ( 6 million ) and doing some educated conjectures about factors that determine pizza market size.

You may besides desire to cognize the size of Spizza. the current rival. including gross revenues. figure of shops. and proportion of Paris that is
presently served by Spizza.

Other utile information: market sections targeted and served by Spizza ; market sections that are neglected by Spizza ; what type of merchandise do they offer ; what do they bear down for their merchandise ; what is the cost construction of their concern and what merchandises are most profitable.

Method of analysis:
The best method of analysis would get down by finding if any portion of the market is non good served presently by Spizza. Determine what are the demands of any ignored market. and understand if your client could productively function this market.

Besides. seek to understand the likely competitory response of Spizza to your client’s entry. How will you support your place if Spizza decides to contend for market portion?


You are sing a client who sells golf balls in the United States. Having had no clip to make background research. you sit on the plane inquiring what is the one-year market size for golf balls in the U. S. and what factors drive demand. Your plane lands in 15 proceedingss. How make you travel about replying these inquiries?

Typical solution:

Golf ball gross revenues are driven by end-users. The figure of end users: take the population of 300 million ; presume that people between 20 and 70 drama golf ( about 2/3 of the population. or 200 million ) and gauge what proportion of these people of all time learn to play golf ( guess 1/4 ) which reduces the pool to 50 million. Now. gauge the frequence of purchase. If the norm golf player plays twenty times per twelvemonth. and requires two balls per clip. that’s 40 balls per individual. Multiply that times the 50 million. ensuing in a 2 billion ball market.

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